When selling a house, there are a variety of factors that you must take into consideration. From what possessions to remove before a viewing, to where you’ll move to after the house is sold; the questions are endless. During this process, one very important question that you need to ask yourself is what fees may you face after the house is sold. No one likes to be caught off guard with fees and taxes, so it’s best to be equipped with as much information as possible.
Here at FastCash4Houses, we want you to be in the know about tax, to avoid that shock later down the line. We want to enable your house selling venture to go as streamlined as possible. In this article we will be discussing capital gains tax and will be answering whether or not it will apply to the sale of your house.
When you possess an “asset” that has increased in value and you “dispose” of this asset, Capital Gains tax is paid on the gain you make. “Disposing” of an asset includes giving it away as a gift, selling it, swapping it for something else, and receiving compensation for it, like if you were to lose it and get an insurance payout.
To reiterate, Capital Gains tax is specifically paid only on the gain. For example, if you bought a watch for £3000 and you later sold it for £13000, the gain you made is £10000. You do not have to pay, however, if the gain you make in a year is below your tax-free allowance. As it stands, the Capital Gains tax-free allowance in the UK is £12,300.
When it comes to houses, you also do not have to pay capital gains tax if the property you sell is not your main home. By this we mean, buy-to-let properties, inherited properties, and business premises or land. Additionally, if you gift or sell a house to your wife, husband or civil partner, you are usually exempt from Capital Gains tax. However, if you and your partner have separated or have not lived together in the tax year (6 April to 5 April the following year) you will be subjected to pay Capital Gains tax.
Paying Capital Gains tax is quite a straightforward system, there is plenty of information regarding tax on the Gov.uk website. Alternatively, we have plenty more FAQ’s on our site which are bound to answer any further queries you may have.
With FastCash4Houses, you can sell your home in the quickest, cheapest, and most convenient way. With us, you can sell your property in a quicker time frame with no estate agent or legal fees to pay. To get your free no-obligation valuation today and to find out more about how we can help then visit our website at https://fastcash4houses.co.uk/ or get in contact with us to speak to a member of our team directly on 01204 294356 or [email protected]. At FastCash4Houses, we want to support you every step of the way as you sell your property.
